Lehman to invest up to $25.1 million more in New York properties

By Caroline Salls

Pittsburgh, April 14 - Lehman Brothers Holdings Inc. received court approval to make up to $25.1 million of additional investments in properties at 25 and 45 Broad Street in New York City, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Lehman said it must complete construction at 25 Broad Street and cover the properties' operating expenses to protect against asset loss and enhance the properties' value. The construction will include the demolition of a deteriorating portion of the existing structure.

Also, Lehman said it needs to transfer related development rights to 45 Broad Street so the property can be developed in an economical and efficient manner.

Lehman provided financing for the properties in 2006 and 2007. In January 2009, Lehman began two separate actions for the foreclosure of the properties.

The foreclosures are expected to be completed in the fourth quarter, the motion said.

New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-13555.

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